safety

Should You Fix Up Your Car, Or Get a New One?

Emily Guy Birken — Fri, 06 Jul 2018 08:30:09 +0000

Your aging car's engine has been knocking loud enough that turning up the radio doesn't help anymore. You take it to your trusted mechanic, who gives you the bad news: One of your main bearings has worn out, and the repair will cost around $3,000.

Since you can't know for sure if this is just the beginning of your car's transition into a rolling money pit, or if the $3,000 repair will get you motoring happily along for another 50,000 miles, it can be nigh-impossible to figure out whether to stick it out with Old Faithful or cut your losses and buy a new car.

Thankfully, there are some guideposts that will help you to make this difficult decision. Here's what you need to consider if you are trying to decide whether to fix up your old car or get a new one.

Consider the age and safety of your ride

If you are still driving a car that emerged from the factory in the early-to-mid 1990s, you might want to factor safety into your decision of whether to repair or replace. Safety standards have grown and changed a great deal in the past 20 years, and upgrading your car to something that was built in this millennium could make a big difference if you were to get into an accident. This is especially true for anyone using an older car as a family vehicle. Newer cars have made it much easier to properly install car seats, for example, which can offer parents a great deal of peace of mind. (See also: 8 Common Car Repair Mistakes That Can Cost You)

Take rust seriously

According to automotive journalist Steven Lang, there is one type of car problem that indicates your automobile is ready for that big garage in the sky: "If the integrity of the car's frame has been compromised by rust, then you should plan on getting a new car."

While a little surface rust on a car's frame is not necessarily a big deal, your mechanic will let you know if the frame has rusted to the point where it has become dangerous to drive. "It's game over at that point," Lang states. "Cars cannot come back from that kind of damage." (See also: Bookmark This: Follow This Car Maintenance Checklist)

Find an online forum for your make and model

Even if you are not concerned about the safety of continuing to drive your aging car, you might still worry that a repair is just the tip of the iceberg, and that you'll continue throwing good money after bad if you head down this path.

While this kind of quandary was very difficult to figure out pre-internet, these days you don't have to decide what to do by yourself. Start by searching for an enthusiast forum online that is dedicated to your specific make and model of car. (Believe it or not, there are such groups for everything from Kia Sorentos to BMW E30 M3s — although the former are more likely to be "support groups" rather than enthusiast forums.)

Once you've found a forum, you can ask about the specific repair you are considering. It's likely that someone else has faced a similar problem on the same car, and they can let you know just how much more drive time their repair was able to buy them.

You can also use the forums to find out if there are common problems facing your specific car, as some cars have known issues that crop up as they age. These forums are also a great place to ask about recalls or other issues that you might not be aware of, especially if you bought your car used. (See also: Your Car Was Recalled. Now What?)

Determine cost vs. worth

So how do you know if the cost of a repair is worth it to you? For insurers, simple subtraction makes the decision easy. If the cost of a repair is higher than the Kelley Blue Book value of a car, the insurer will total the car. And if you are in a position to purchase a new car, this kind of simplified equation is helpful.

However, what a car is worth to you is not necessarily as simple as that. If you own your current car free-and-clear, and would struggle to take on a car payment, the determination of whether the cost of the repair is worth it becomes a little more difficult. A good rule of thumb in this situation is to buy a new car if the repair would cost more than one year's worth of car payments — but keep the clunker if it is less.

And don't forget the potential value of trading in your clunker, even if it needs a repair. It's tougher to sell or trade in a car in need of a major repair, but your old ride may still be worth something and can help you with the purchase of something newer or more reliable. (See also: 8 Questions to Ask When Buying a Used Car)

Answering the impossible question

You can never know for sure if you made the right call with this kind of repair-or-replace decision. But gathering all the information you can about your car's safety, its common problems, and its worth can help you to determine if a repair will serve you better than a new car.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

These 8 Modern Car Features Are Riskier Than You Think

Dr Penny Pincher — Mon, 11 Jun 2018 08:30:18 +0000

If you're in the market for a new car, you may be paying close attention to some of the more modern features than can improve your driving experience. While some newer car features improve the safety and convenience of your vehicle, others can make your ride more dangerous. Here's what you need to know to stay safe with modern car add-ons.

1. Air bags

Air bags provide a significant improvement to vehicle safety overall, but there are certain situations where they present a hazard. Air bags can be dangerous to children or adults of short stature due to the close proximity of shorter individuals to the front bag when it deploys. To reduce risk of injury, seat shorter folks in the back seat, or adjust the front seat to a position further away from dashboard.

Another problem in recent years is faulty air bags. When buying a used car, check to see if it falls into the massive recall for Takata air bags that can malfunction and spray shrapnel when they deploy. (See also: Your Car Was Recalled. Now What?)

2. Keyless ignition

Keyless ignition is a convenient feature that allows you to start your car remotely. A keyless ignition fob allows you to press a button and transmit a radio signal to start your vehicle. But this convenience can come at a dangerous cost. Without the need to turn a key or actually sit in the car, it's easy to forget that the engine is running. You may inadvertently create a carbon monoxide hazard in a garage or other enclosed space. Always check that the engine has been turned off when you exit the car.

3. Touch screens

That big screen on the dash that runs the climate controls, shows you a map, and controls your music can be a major distraction. Not only does the display catch your attention, but dynamic touch screens take a lot more focus to use than old fashioned knobs and buttons that you can learn to operate by touch from muscle memory. Touch screens have different menus for different functions and typically require the driver to look at the screen to see where to press, diverting attention from the road. Practice safety first by not using the touch screen while driving.

4. Jacked-up vehicles

Jacked-up vehicles have been trendy for quite some time, going back to the SUV craze in the 80s and the Hummer craze in the 90s. Driving a large vehicle that sits high above the ground provides a commanding view of the road, but handling can be compromised. Tall vehicles have a higher center of gravity and heavier tires, which results in a greater risk of rollover.

Driving a jacked-up vehicle also poses risks to other cars on the road. Instead of meeting bumper-to-bumper in a collision, a smaller car might take the bumper of a jacked-up vehicle through the windshield, greatly raising the risk of serious injury or fatality.

5. Roof racks

Much like with a jacked-up SUV or truck, placing heavy items on top of your car raises the center of gravity and increases risk of rollover. In addition, items placed on roof rack may become loose during transit, presenting a risk of injury to pedestrians or passengers in nearby vehicles. Finally, attempting to lift cargo up to a roof rack can cause back injuries.

6. Overstyling

Styling can make an ordinary car look cooler and more expensive, but it can also make cars more dangerous. Dark tinted windows can reduce visibility for the driver, especially at night. This problem gets worse in cars that have lots of electronic displays that can create glare. Chunky pillars make vehicles look sturdier, but also make it harder get a good view of oncoming traffic or obstructions.

7. Super-bright headlights

Some expensive sports and luxury cars come with high-intensity discharge (HID) lights, often using xenon gas, that generate very bright light with a bluish hue. Some vehicle owners upgrade their standard headlights to HID to make their car seem more expensive. While bright headlights can improve visibility for the driver of the car equipped with them, the bright lights can produce glare and reduce the vision for oncoming motorists.

8. Cruise control

Cruise control can make long distance driving much easier — just reach your desired speed, and you can set your cruise to maintain speed without working the accelerator. The problem with cruise control is that it tends to promote unsafe driving behavior and reduces reaction time. Drivers using cruise control tend to cruise right up on slower vehicles before making a quick lane change to pass. Be vigilant at all times while driving — cruise control is not autopilot.

Cruise control can also be dangerous in slippery conditions that can result in the tires spinning out of control when there is not enough friction between the tires and the road. You should never use your cruise function in poor weather conditions.

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This article is from Dr Penny Pincher of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Red Flags to Look Out for When Renting Your First Apartment

Paul Michael — Fri, 25 May 2018 08:30:31 +0000

Are you ready to fly the nest? If it's time to find a new apartment, there are some things to look out for before signing a rental agreement. If you don't know what to be wary of, your first place could put you in financial jeopardy and even physical danger. These are the biggest red flags. (See also: 10 Questions to Ask Before Signing a Lease)

1. A limited selection of photos

If the ad for the apartment features just one or two photographs of the place, don't even bother making a call to see it. Landlords know that great photos help sell a place. It's the first thing any potential renter will look at, and they will scour them before looking at features and price. If there are just a couple of photos, perhaps blurry or only showing one room or the outside of the building, the landlord is hiding something. Either the unit is in awful condition, it's small and dark, or it's got other issues that he or she would rather not talk to you about until you get there; and that's when the hard sell begins. Don't see any place that doesn't show you all the interiors and exteriors in advance.

2. Bars on the windows

You may think it's good to have an extra layer of security, but let's be honest; bars mean trouble. Clearly the apartment is in an area rife with crime, and if the landlord has taken to adding bars to the windows, it's bad. The only reason bars are up is because it's a last resort to prevent break-ins, vandalism, and other crimes. If you see bars, don't even enter the building.

3. The rent is too good to be true

Landlords are in the business of making money. Whether it's just one person renting out one property, or a whole agency renting out hundreds of homes, the end goal is profit. So if you come across an apartment that is priced way under the going rate for that area, be afraid. Be very afraid. It could be a bait and switch, which is illegal — when you call, suddenly that apartment at that low price is no longer available, but there's a similar one that's way more expensive. Or, there's one that's the same price but has fewer rooms and is in an awful neighborhood.

Another reason could be that there is a major problem with the rental unit. For example, it's directly above a loud bar or restaurant, or it's near a high-traffic area that ensures you'll never get any sleep. The price may also be compensating for unusually high utility bills, pest infestation, or significant problems with the structure. The chances are, a super-low price is simply a worm on a hook, and you're the fish being reeled in. Don't bite.

4. Emails coming from different people

When you reply to an ad for an apartment listing, it's fairly common to get a few different reply addresses at first. One could be an auto-responder saying someone will be in touch, or it could come from a third party domain like Craigslist. However, if the email addresses keep changing, and the name of the person you're dealing with is also going through an identity crisis, you have a potential scammer on your hands. Take a look at the domain names, see if the person has a presence on LinkedIn, or if there is a legitimate website linked to that landlord or agent. If they're a ghost, you should steer clear of this property. And if the emails are filled with typos and other errors, that can also be a bad sign. (See also: 6 Ways to Apartment Hunt on Craigslist Without Getting Scammed)

5. The landlord or agent isn't available

If you're having trouble getting in touch with the landlord now, at a time when he or she should be extremely keen to talk to you, imagine how tough it will be when you're a tenant. At this stage in the process, you represent money. They want the apartment rented out, and to be making a profit ASAP. If your emails go unanswered for days, your calls go to voicemail, and you are having to play detective to get any kind of answers, this is not the place for you. It could be a scammer, it could be disorganization, or it could be laziness and apathy. None of these are qualities you want in someone who you'll be relying upon for repairs to the apartment and other issues.

6. Too many things are in need of repair

If you're walking around and everything looks good, but the door on the microwave is dinged up or loose, it's probably just an oversight or something the landlord intends to fix before you move in. Any good landlord will bring it up and assure you the repair will be made. If not, ask for it to be taken care of before signing the lease. However, if you see signs of neglect, and many items that look broken or in a state of disrepair, move on. If the landlord is showing you this, imagine what he or she is hiding from you? It also doesn't bode well for any repairs you may need once you're a tenant. (See also: 13 Things You Must Inspect Before Signing a Rental Agreement)

7. Some doors remain closed on the viewings

Yikes. If there are doors that are locked and the landlord won't show you that area, you have every right to be very suspicious. You're about to live here, and deserve to see every room. That means the closets, the attic or basement, the garage or storage unit, and even the crawl space if you desire. Some landlords will say that some rooms are off limits because they use it for storing maintenance supplies and other personal items. That needs to be considered in the lease, and should be accounted for in the price of the rent. But any landlord serious about his or her business will rent their own separate storage unit.

8. There are funky odors or stains

There's no excuse for this. An apartment should be made "view ready" by the landlord, and if it's not looking or smelling good, you're going to have issues. The biggest concerns are mold and mildew. If you're smelling that damp, musty odor it means the apartment could have some major issues with mold. This can cause structural damage and health issues. You should not be smelling any kind of cigarette smoke unless the listing says "smoking OK," which is rare these days. And look for stains on the walls or ceiling. If you see a fresh coat of paint on one small section of the apartment, ask about it. They may be trying to hide a problem.

9. The tour is rushed and given at an odd time

If you have a landlord or real estate agent rushing you through the tour, or only letting you see the apartment at certain times of the day, you are being deceived about something. Maybe the neighborhood is noisy and dangerous after dark. It could become an all-night party zone. Or, you could get stuck next to horrendous traffic and transportation noises during rush hour. And if you're close to an airport, make sure the apartment is insulated from that noise or you'll regret moving in for the entire term of the lease.

10. You're asked to sign an incomplete agreement

Don't just walk away, sprint! A lease is a contract between you and the landlord, and your signature means you agree to whatever is on it. If the landlord or agent says certain items will be filled in later, you cannot trust what's coming. Maybe they tell you you're getting a discounted rate, but then change their mind. They may say they'll take care of all the utilities, but afterward change that. They may even add in that the security deposit is nonrefundable. When you sign a lease, everything should be completed, and there should be two identical copies — one for you and one for the landlord, each signed and dated by both parties. And if they say you'll miss out if you don't sign right now, it's a pressure tactic that can only lead to trouble. (See also: 10 Questions Landlords Can't Ask)

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Your Car Was Recalled. Now What?

Paul Michael — Thu, 22 Feb 2018 09:30:05 +0000

If you feel like you hear about car recalls constantly, you're right. In 2016, there were almost 53 million recalls, according to Roadshow by CNET. And although we're only just into 2018, Cars.com reports some 50 million Takata air bag inflaters are currently under recall. With car parts constantly being tested and updated, you're bound to get a recall letter yourself at some point. But what should you do when you are on the recall list? (See also: Bookmark This: Save Money With an Easy to Follow Car Maintenance Checklist)

First, there's no need to panic

You're driving along in your car, maybe getting groceries or picking the kids up from school, when you hear the news on the radio — XYZ automaker is recalling four million cars. You have that car, and it's only natural that it scares you a little. After all, your car is not only your primary means of transportation, but if something is wrong with it, could your life be in danger? Fortunately, probably not.

Most recalls are minor, and have very little impact on the way the vehicle operates. If it's a voluntary recall from the manufacturer, it's likely not a big issue. If the NHTSA (National Highway Traffic Safety Administration) gets involved, it could be more serious. And although a recall is only issued when it is a safety hazard, those risks can be very small.

Find out exactly what kind of recall has been issued

As soon as you get the chance, call your local dealership or check the internet and find out what kind of recall has been put in place. It could be something as simple as a software update. Maybe one particular part has broken on some models, and the manufacturer is replacing them all as a precaution (most err on the side of extreme caution rather than risk a lawsuit).

You should have also received a letter or email from the manufacturer, and you can verify your issue by typing in your VIN (it's on the driver's side dashboard) to a site like NHTSA.gov, Safecar.gov, or Cars.com.

Read what's detailed in the recall notice

The chances are that you'll be notified about the recall in several ways, including local and national news reports, a call from the dealership, email, and a physical letter. The letter and email will highlight several factors about the recall, and will include:

a complete description of the defect or issue.
what you should look for to see if your car is already experiencing issues.
the dangers the defect presents.
what the manufacturer will do to resolve the problem.
how long you can expect the repair to take.
the name and address of the nearest approved repair facility.
contact information should you have additional questions.

Find out if the recall is covered by the warranty or manufacturer

A lot of people assume that the recall is covered. After all, the manufacturer made the mistake, so shouldn't they pay for the repair or replacement? Timing is a big factor in the answer to that question. As DMV.org points out, there is a 10-year window for recalls. That means 10 years from the original purchase date of the new car, not 10 years from the day you bought it. So if you bought it used when it was 11 years old, you're not within the recall window.

If you aren't covered, you have to weigh the time and expense of the repair against the seriousness of the issue. For example, if it's a faulty wiper blade motor and it hasn't failed you yet, maybe wait until it starts giving you issues. A recall doesn't mean the part is guaranteed to break.

Make an appointment with an approved garage

If the recall affects only a small percentage of cars, you likely won't have an issue finding an appointment time. In many instances, active recalls are checked when you bring your car in for an oil change or tire rotation, and can often be repaired during that appointment.

However, if it's a large recall, or requires a specific part, call ahead and make an appointment for that specific issue to be repaired. This will give the service manager time to order the parts needed to complete the recall. While the majority of recalls can be dealt with quickly, some can have the local garages backed up for months. Hopefully, you can still drive the car safely until then.

If the car is unsafe to drive, make arrangements until it is repaired

Most of the time, the recall isn't going to make the car undrivable or unsafe. However, if the issue poses a serious risk to you and your family, are you really expected to drive it until the repair can happen? In some instances, the waiting list is long. What do you do for transportation?

In some cases, the auto manufacturer may offer to pay for a rental vehicle to customers affected by the recall. However, this varies from case to case, and in some instances it's possible you will have to cover the cost of a substitute vehicle while your recalled car is waiting for repairs.

Stay vigilant

Drive the car and see if everything feels the same as it did before you took it in to be repaired. If you have issues, or something else has come up that wasn't there before the recall, contact the repair facility and voice your concerns.

Even if everything turns out great, that does not mean you are free and clear forever. There may be other recalls issued during the time you own the car, and you should make a point to check in with the NHTSA periodically to ensure your car is not part of a different recall. Parts fail. Problems happen. Be vigilant.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Best Neighborhood Features for New Families

Emily Guy Birken — Thu, 14 Dec 2017 10:00:06 +0000

What you look for in a neighborhood changes as your life changes. When you are first out on your own, having an apartment or house that is within walking distance of local night life is a big draw — but it becomes more of a big drag if noise from the local clubs and bars keep your baby from sleeping through the night a few years later.

But just because you know that you want a more family-friendly neighborhood doesn't mean you know what to look for. Here are five features you'll want to keep an eye out for as you find the home your family will grow into:

1. Good schools

Your little peanut may only be a baby right now, but preschool and kindergarten are just around the corner. Choosing a neighborhood that has good schools is an important part of finding a home that will serve you well for years to come.

Websites such as GreatSchools.net allow you to search schools by ZIP code, city, district, or school name. You'll learn information about test scores, student-to-teacher ratios, and student demographics, which can help you figure out if the local schools will be a good fit for your family.

Don't get hung up on ratings and test scores, however, because there is more to a good school than that. For instance, though I love our current house and my son's elementary school, I wish I had thought about the fact that our school district has no bussing. That means I will be on the hook for school drop off all the way into high school.

This is why it's a good idea to make sure you fully check out the schools and/or districts you're interested in to make sure you know what to expect from them. A good fit for your children and for your family's needs is a crucial part of a good education. (See also: How to Evaluate a Neighborhood Before You Buy)

2. A community of other families

It may be cliché to say that it takes a village to raise a child, but it certainly does make parenthood easier if you have a local village handy when your kids are small.

My current home is on a street that includes about a dozen other families with small children, which is not only great for my kids in terms of making friends, but it has also been a major boon to my husband and me. For example, last week I was running late to pick up my seven-year-old from school, and I was able to call my neighbor whose daughter goes to the same elementary school. She picked up both kids and I didn't feel stressed at the thought of my son waiting forlornly by the playground until I made it there.

You can look for evidence of whether a neighborhood will welcome a family and small children. Are there bikes and toys in yards? Are there children outside playing? Do you see families going for walks? If you see a community of families enjoying their time outside, there's a good chance this will be a welcoming community for your own little family.

3. Low traffic

One of the first houses my husband and I looked at when we moved last year was on the corner of a busy street. Before we went to look at the house itself, we sat in our car and counted the number of vehicles that passed by over the course of five minutes. Dozens of cars drove past, going faster than I was comfortable with. We turned down the house, even though it was otherwise exactly what we were looking for.

It's not enough to pass on homes that are near busy streets. You also need to make sure your sleepy neighborhood street isn't used as a shortcut during rush hour. Long neighborhood streets that offer a straight shot from one high-traffic area to another can be abused by rush hour commuters who just want shave a few minutes off their drive. You can avoid this problem by looking for a house on either a cul-de-sac or curving street, or just checking out the traffic on the street of a potential home. (See also: 14 Things You'll Hate About Your Next House)

4. Sidewalks

Though the absence of sidewalks may seem like a minor detail when you are looking at a new home, having them can go a long way to making a neighborhood more family friendly. Not only do sidewalks make it more possible for families to get out for walks in nice weather, but they encourage children's independence, since you know your kids can safely get to a friend's house several doors down without needing to hold your hand. Sidewalks also make an ideal spot to learn to ride a bike, work on sidewalk chalk art, and hold a lemonade stand — all staples of a happy childhood.

5. Nearby parks or playgrounds

Having a park or a playground within walking distance can ensure that you find a family-friendly neighborhood. Even if the street you end up on doesn't have a lot of families with similar-aged kids, making the nearby park one of your regular haunts will help you to meet other young families in the neighborhood and build the kind of caring community you're looking for. And that's not to mention the benefit of having a nearby destination where you can take the kids to get their wiggles out without having to get in the car.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Money Moves to Make After Buying Your First House

Christa Avampato — Thu, 28 Sep 2017 08:01:06 +0000

You bought your first home. This is an exciting conclusion to what was likely a long and winding road. As you are unpacking your boxes, settling in, and decorating your new digs, there are some smart money moves you should make immediately to keep the good times rolling.

1. Adjust your last will and testament

Now that you have a new home, you need to update your will. In this time of excitement, updating a will might feel like putting a damper on the fun, but it's critically important. You need to be responsible for protecting the future of your loved ones and your home. (See also: Don't Make These 5 Common Mistakes When Writing a Will)

2. Get rid of PMI as fast as you can

Private mortgage insurance (PMI) is a necessary fee for most people who buy a home with less than a 20 percent down payment. This can be a significant expense, sometimes costing thousands of dollars each year. Do whatever you can to get to that 20 percent equity mark so that you can drop the PMI payments.

3. Make a plan to pay a little extra every month

At the beginning of a mortgage, you are mostly paying interest and very little principal with every monthly payment. That ratio of interest to principal will decrease eventually, but it will take a few years.

To more quickly pay down your mortgage, set aside a little extra every month for your mortgage payment. Why? Anything you pay above your monthly payment goes directly against the principal. (Just be sure those extra payments are going to principal; check with your mortgage lender.) The faster you reduce your principal, the faster you will pay off your home. A lower principal will also make it easier to refinance the mortgage down the line if you choose to do that in the future. (See also: What's Faster for Mortgage Payoff: $100/Month Extra or 1 Payment/Year Extra?)

4. Replenish your emergency funds

Many people use a substantial part of their cash savings, if not all of it, when they buy their first home. It’s crucial that you begin to rebuild this emergency fund as soon as you can.

An emergency fund is necessary if you lose your job for any reason, have unexpected bills, or if you need to do emergency repairs on your home. Experts in the consumer finance field have varying opinions when it comes to how much to set aside in an emergency fund, but many suggest having three to six month's worth of expenses saved. Some more conservative advisers even suggest saving up enough to cover one year of expenses. Consider your lifestyle and personal risk profile to find the best target amount for you.

5. Reconsider your life insurance policy

Now that you have this beautiful new home, you will need to make sure the mortgage can be covered by your life insurance. You don’t want your heirs to struggle to figure out what to do in the event that an unforeseen circumstance occurs.

How much insurance do you need? Generally, the guideline for life insurance is 10 times your annual income plus any large debts like a home mortgage. Talk to your insurance company and/or financial adviser to get their perspective, and make any necessary adjustments. (See also: 5 Reasons Why Life Insurance Isn't Just for Old People)

6. Change your locks and install deadbolts

Safety is a huge part of homeownership, and it has financial implications. As soon as you have the keys in your hand, contact a locksmith to get all of the locks on your doors and windows changed, and install deadbolts on doors where you currently don’t have them. The previous owners likely gave copies of their keys to neighbors, friends, family members, the dog walker, or people who did work on the home. You don’t want those people to have access to what is now your house. You may also want to consider a home security system.

All of these safety measures may provide a financial deduction on your homeowners insurance. Contact your insurance company to find out if you qualify for a reduction in your rate. (See also: 7 Times to Update Your Homeowners Insurance)

There is a desire to rest on our laurels after completing the purchase of a home. You should definitely bask in the glow of new homeownership, but this is also a time to remain financially vigilant. Remember that when it comes to your personal finances, remaining responsible and forward-thinking is the key to lasting success.

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This article is from Christa Avampato of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Don't Buy a House With a Pool Until You Can Answer These 7 Questions

Mikey Rox — Wed, 05 Apr 2017 09:00:12 +0000

Having a built-in pool on your property comes with plenty of perks — like providing respite from the summer heat and elevating your kids' social status. But this luxury isn't all splash battles and cannonballs. Pools, among other things, require costly maintenance while also introducing a laundry list of liability and safety concerns into your life. Keep your head above water when considering buying a house with a pool by asking these eight important questions.

1. Does everyone in the family know how to swim?

This may seem like a silly question to ask yourself before buying a house with a pool, but you might be surprised at how many pool-owners either can't swim themselves, or have children who can't swim. Both of these scenarios could end in tragedy. And if you can't swim, there's only a 13 percent chance your child will learn how to swim. Not the best odds to have when a life is on the line.

2. Does everyone in your family know CPR?

If you're planning to own a pool, it's a wise decision to be trained in CPR. The few minutes' time between on-the-scene CPR and that which is administered by EMTs, who may take several minutes to arrive, is literally life and death.

3. How old is the pool?

Keller Williams Real Estate agent Jen Teague provides a few important construction questions to ask, including:

What company installed the pool and is it still in business?
Is it under warranty?
Has there been any major work done to the pool over the last year?
Are there any consistent issues (leaks, etc.) the owner has had with it?

You're specifically looking to find out how much longer the pump life is, as well as any maintenance that may be needed for the liner or granite. After a while the chlorine wears down the liner and it will be more prone to tearing. Granite cracks over time as well.

Three-decade pool industry veteran Michael Kern of MGK Pool Service in Lowell, Massachusetts adds, "Cement pools need to be replastered every six to nine years; above ground pools need the liner replaced every four to eight years; and in-ground pools need the liner replaced every 15 to 20 years."

4. Is the pool surrounded by a fence?

A fence around your pool isn't to keep your kids in, but rather other people out — like wandering toddlers and even pets. The U.S. Consumer Product Safety Commission's (CPSC) Pool Safely campaign, which focuses on drowning prevention and water safety (a must read if you're planning to become a pool owner!), suggests that the fence stands at least four feet high, surrounds the pool on all four sides, and includes a self-closing, self-latching gate. Adding an alarm to the door is an extra layer of protection so you're alerted to unauthorized visitors.

5. Does the pool have a safe drain cover?

The Virginia Graeme Baker Pool & Spa Safety Act, named after a little girl who died in 2002 when the suction from a spa drain trapped her under water, mandates drain covers for public spas and pools — but homeowners also should practice this safety measure. A pool technician can tell you whether or not your drain cover needs updating, which is generally about every five years. The ZAC Foundation, an organization working to strengthen pool safety legislation and educate children on water safety, explains the difference in drain covers and why having a compliant drain cover is important.

6. How much will maintenance cost?

Most homeowners have a general budget in place for day-to-day home expenses, plus a little extra to cover emergencies. But those who have never owned a pool may not be prepared for the added expense. Be sure to ask your agent about how much annual maintenance the pool will need so you can get a good idea of whether or not you can afford its upkeep.

This is also a good time to ask the previous owners what pool necessities will be left behind and what you may need to buy when you assume ownership.

7. How much will your homeowners insurance increase?

Your swimming pool is a liability, for sure, and your insurer will consider that when pricing your policy. Before you jump in head first, hammer out the details of the policy and its cost. Additional umbrella insurance is always recommended for homeowners with a pool.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Pay with a Selfie: How Safe Are the New Ways to Pay?

Damian Davila — Fri, 17 Feb 2017 10:31:16 +0000

In 2016, more than half of all purchases in the U.S. were made online instead of at a brick-and-mortar store. From selfie-payments to Facebook Messenger bots, there is now a long list of unusual ways that you can pay the water bill or complete your grocery run for the week.

But how safe are these new ways to pay? Let's take a closer look at how some of these new payment methods work, and what you can do to make them even safer.

1. Facebook Messenger Bots

Colorado-based fintech company BillHero was the first to leverage a Facebook Messenger chat bot to pay bills via chat commands. Later on in September 2016, Facebook enabled all of the 34,000 plus developers on the platform to support payments. The social media giant is working with several players in the credit card industry and fintech, including Visa and Braintree, to process all types of payment options.

By opening the gates, Facebook allowed U.S. customers to complete a wide range of other transactions and purchases on Facebook Messenger. In a nutshell: The chat bot lets you know about a product that you might be interested in, and provides a "buy now" button. When you click it, it takes you to a checkout screen with your shipping information and payment method for you to review. Boom! Just like that, you're ready to pay.

But Is It Safe?

Well, Facebook Messenger payment bots are covered by the same level of security as all other Facebook products. All transactions using a Facebook chat bot are encrypted or processed through a trusted third-party payment processor, such as PayPal or Stripe, to protect your payment information, such as your card number or CVV. Also, transaction confirmations from a bot will restrict your information, such as only showing the last four digits of your credit card number.

How to Make It Safer

Your first line of defense starts with your Facebook password. Facebook recommends building a password that has at least six characters and is a complex combination of numbers, letters, and punctuation marks. When a password isn't strong enough, the app will let you know. Also, make your Facebook password different from those you use for your online banking, investing, or retirement savings accounts. (See also: 3 Sneaky Ways Identity Thieves Can Access Your Data)

A second tactic is to turn on login alerts so that you receive an automated alert when someone tries logging in to your Facebook account from an unrecognized device or browser. A third is to require a password or PIN whenever sending money or making payments in Facebook Messenger.

2. MasterCard Selfie Payments

Speaking of passwords, MasterCard believes that they cause too much hassle and presents the option to pay with a selfie. The "selfie pay" technology was first tested in the Netherlands, the U.S., and Canada and will be rolled out gradually across the world throughout 2017.

Through a smartphone app, shoppers can confirm a purchase by taking a selfie and letting the facial recognition software verify their identity. According to MasterCard, 71% of users rated "selfie pay" highly during trials.

But Is It Safe?

To prevent somebody from just holding up a picture of you and getting away with a $1,000 shopping spree, the app requires you to snap the picture after you blink or shake your head. Then, the app compares the selfie with stored algorithms of your face to identify you. During the trials, 73% of users believed that "selfie pay" will reduce fraud and 90% of them would use it in the future.

How to Make It Safer

Since "selfie pay" is still in the process of being rolled out, there's little that we can do as of right now. If taking selfies isn't your cup of tea, MasterCard also plans to provide a fingerprint confirmation option with the app and is currently testing voice and cardiac rhythm recognition.

3. Amazon Dash Buttons

Connected to your home's Wi-Fi, the Amazon Dash Button allows you to reorder many of your favorite products with a simple click. To set up each Amazon Dash Button, you'll need to download the Amazon app on your Android or Apple device, connect the Dash Button to Bluetooth, and also enter your Wi-Fi information. Some Dash Buttons don't support Bluetooth connection, and use your smartphone's Wi-Fi connection or speakers instead.

Currently, the button is only available for Amazon Prime members, costs $4.99, and provides you with a $4.99 credit after your first order. There are hundreds of products to choose from including Charmin, Doritos, Greenies Dog Treats, and Red Bull! Once you click the button, an indicator light will turn green when your order is successfully placed, or red if there was a problem.

But Is It Safe?

A device that connects seamlessly to your Wi-Fi, smartphone, and Amazon account — what could go wrong? While there are plenty of folks that have hacked their own button to do anything from turning on lamps remotely to ordering pizza with one click, there are currently no reports of malicious hackers tapping into another person's Amazon Dash Buttons.

How to Make It Safer

Turn on the "order protection" feature on your Dash Button to prevent a new order from being placed until your prior order is delivered. This way you can prevent your spouse or son from tripling an order of detergent on the same day.

Consider turning on the email notifications of your Amazon orders so that you can cancel any orders that you don't recognize.

And it should go without saying, but set a strong password for your Wi-Fi and update that password at least once a year.

4. Chip Cards

No other new form of payment has generated more discontent from American consumers. From the confusion about swiping or inserting, to the awkward conversation with cashiers while waiting for your card to be processed, there is a list of reasons these metallic chips are considered an annoyance by many.

However, the reality is that chip cards are far from being a new way to pay. They have been reducing fraud in over 130 nations around the world for several years. So, the U.S. is just playing catch-up. As of April 2016, Visa had issued roughly 265 million U.S. chip-enabled credit and debit cards, and MasterCard had upgraded about 70% of its U.S. debit and credit cards to the chip format.

But Is It Safe?

The evidence clearly indicates that chip-enabled cards reduce fraud. Visa has reported that among the U.S. merchants who were suffering the most instances of card fraud at the end of 2014, those that began accepting chip debit and credit cards saw instances of card fraud fall 18.3% as of the fourth quarter of 2015. On the other hand, some of the U.S. merchants who opted not to upgrade payment terminals to process chip cards experienced an increase in instances of card fraud of 11.4% for the same period. (See also: 4 Ways Chip Credit Cards Make Life Easier)

How to Make It Safer

Simple: Opt to use your chip-enabled cards over those without a chip, and choose merchants with chip-enabled payment terminals over those who are still holding out. As with everything else, strength comes in numbers. Only when chip cards have become the norm across the nation can we all reap the enhanced security benefits of chip technology.

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This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Solving the World's Problems Could Win You Millions

Paul Michael — Thu, 02 Feb 2017 10:30:35 +0000

How are your problem-solving abilities? Do you regularly come up with ingenious ways to make life better? Are you and your close friends the kind of people who, when they put their minds together, can accomplish anything?

If you're nodding yes to all these questions, you could well bag a huge prize (some are $1 million or more) for solving one of these super hard problems.

1. The Water Abundance Challenge ($1.5 Million Grand Prize)

Can you create water from thin air? That's the problem put before you on this challenge, which has a massive jackpot prize of $1.5 million. The reasons behind the competition are scary. Half of the global population lives in areas where water tables are rapidly falling, and by 2025, it is estimated that 1.8 billion people will live in areas affected by water scarcity.

However, there is a solution. Well, a possible one. There are over three quadrillion gallons of untapped water in the Earth's atmosphere. That's enough water to meet the needs of every person on the planet for a whole year, if someone can figure out a way to extract the water from the air in an energy efficient way. And that's the real challenge. The solution must extract a minimum of 2,000 liters of water from the atmosphere per day, using 100% renewable energy, at a cost of no more that two cents per liter.

Clean water, from the atmosphere, using renewable energy, with minimal costs. That's quite the challenge, and the reason the prize pot is so big. Registration closes on March 15, 2017, so if you have the chops to take this problem on, get your entry in as soon as possible.

2. NASA 3D-Printed Habitat Challenge ($1.1 Million and $1.4 Million Prizes)

This problem centers around making a 3D printed habitat for a NASA astronaut. If you've seen the movie The Martian, you'll know how important a dependable, lightweight living environment is to a NASA crew member. The advent of 3D printing has led to a whole new direction for innovation in this area. And now you could be a part of it.

The big hurdle you will have to get over is raw materials. Rather than bringing them on the mission (which adds weight and cost to the project), the idea here is to "print" a habitat using the local indigenous materials, or recycled materials. As you can imagine, if the habitat is to be based on the moon, or Mars, that does not leave you with a lot of options.

Phase 1 of this contest is already over, but you can still register for Phases 2 and 3 of the challenge. Each brings a substantial prize to the winning design.

Phase 2, known as the Structural Member Competition, focuses on material technologies needed to create and build the habitat. Phase 3 is the actual printing and building of the scaled habitat design. Both offer over $1 million to the winner, so if this kind of engineering problem is your thing, you should get started ASAP.

3. Wearable Alcohol Biosensor ($200,000 First Prize)

Alcoholism, and alcohol-related problems, are a major cause for concern in the United States. A report published in 2014 showed that the top 10% of alcohol drinkers consume an average of 74 drinks every week (that's more than 10 drinks per day). That's over two bottles of wine every day, or three 24-can cases of beer per week.

Knowing the severity of the problem, the National Institute on Alcohol Abuse and Alcoholism wants to help Americans get off their booze addiction. So, they have issued a challenge, with a top prize of $200,000.

You are being tasked to create the prototype of a sleek, unobtrusive, noninvasive, wearable, real-time blood alcohol monitor. Imagine a smartwatch that gives you an instant read of your blood alcohol content, or perhaps some kind of digital patch or piece of jewelry. This would become a self-monitoring device that people can use to chart their alcohol use, and something the local doctor can use as a reliable indicator of alcohol use (and abuse).

If you have something in mind, get over to this site before May 15, 2017 and submit your prototype. You could win a lot of money, and save a lot of lives.

4. Women's Safety Challenge ($1 Million Grand Prize)

The statistics behind this challenge are terrifying. Globally, one in three women have faced physical or sexual violence in their lifetime. Geographically, it can be much worse in some areas. In New Delhi, a 2012 study revealed that 92% of women experience some form of sexual violence in public spaces. And despite the growth of technology, including smartphones and wearables, the statistics are not changing. Although most of us carry a communication device, it's not helping the problem.

The challenge here is to use modern technology that will help keep women and communities safe. How can devices like smartphones, coupled with a community of people ready to help, create a network that protects women from the dangers of society? The winning solution will autonomously and inconspicuously trigger an emergency alert, transmitting information to a network of responders, all within 90 seconds and at an annual cost of U.S. $40 or less.

This is something that can have a real impact on your own community, and the world. You can read more about the challenge, and the prize.

5. The Medical Treatment Free Time Challenge ($20,000 Top Prize)

Hopefully, you never have to be the beneficiary of the solution to this challenge. It is based around the amount of time that some people have to spend basically sitting idle while they receive medical treatments. A typical example of this would be kidney dialysis, which requires patients to sit still for around four hours, three times per week. But as the challenge states, this is for anyone receiving medical treatment that has free time to spare while undergoing the procedure.

Instead of reading a book, listening to music, or watching TV, what could the patient do that is more beneficial to his or her recovery? Could this time be better spent doing something that actively helps in the treatment itself, or something that works to better the attitude and outlook of the patient?

If these questions are already getting your mind to work overtime, take a look at the details. You will have to register for free, but it could be well worth it for you, and the people your solution helps.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Beware These 6 Phony IRS Calls and Emails

Paul Michael — Wed, 25 Jan 2017 11:00:08 +0000

Most people aren't really thinking of filing taxes just yet, but they are starting to collect the information needed to file by the April deadline. That means the scammers are out in force again, ready to trick millions into submitting personal information, or to make payments that will go into the pockets of thieves.

These six scams are the biggest offenders, and once again, they'll be used widely this year. Watch out for them.

1. The "You've Got a Refund" Email

Who doesn't love getting money back from the IRS? When you get this one in your inbox, you could certainly be fooled into thinking it's legitimate. Unlike many of the phishing emails, it appears to have decent grammar, it's well formatted, and it has something of an official look to it. What's more, the refund isn't huge. If it had stated you were getting many thousands back, you may pause for thought. But a small sum, under $100, is less likely to trigger alarm bells. It all seems legit. But, it's not. And by clicking the link in the email, you are going to a fraudulent site designed to collect personal and banking information.

As the IRS clearly states on its website, it will never initiate contact with taxpayers over email, text messages, or social media channels. The main contact is snail mail, and while you may get actual calls, they will be easy to verify (more on that later).

Do not look at the "from" email address, either. These can be simulated to look like they have come from an official agency. Look at the link address in the email; this will definitely be going to a site that tries to look official, but isn't, such as www.irs-gov.com/refund. The bottom line: Any kind of "you've got a refund" email from the IRS is a scam, and should be reported to them immediately.

2. The "The Bill Was Lost in the Mail" Call

If you receive a call from the IRS saying you owe money, it's a scam. That's just a hard fact. The IRS clearly states on its website that it will never call you if you owe taxes, without first sending you a bill in the mail. Of course, thieves are getting wise to this being common knowledge, and are now saying that the bill must have gotten lost in the mail.

At this point, you may well be put into a world of self-doubt; and that's when the scammer jumps on the opportunity. They hear the hesitation in your voice, and start alarming you. They will say that as the bill has been long overdue, you are now in serious trouble. You have to pay the back taxes immediately or risk going to jail. It's at this point that many people become so scared that they pay up. This is all a con, and you can easily verify this.

For starters, a real IRS agent will not ask for money over the phone. If this is the request, hang up. They also will not threaten you with arrest or deportation. You can also ask for their IRS badge number and call back number. The scammer will hang up on you.

3. The "Affordable Care Act" Email

One of the downsides of the Affordable Care Act is that it is still quite new, and therefore, has many unknowns. There is even a page on the IRS website dedicated to the intricacies surrounding the new health care law; and that is perfect fodder for a scammer. Where there is doubt, there is a chance to profit.

The scam will come as an email (and in some rare cases, a letter) alerting you to something called a CP2000 notice. It's worth noting that this is, in fact, a real type of notice. But in this case, it's completely fake. The big giveaway is that it is issued from an Austin, Texas address, with a phony payment voucher number called a 105C.

The scam uses language designed to scare you into paying the bill, and here's another huge red flag — the check should be made payable to "I.R.S." at an Austin Processing Center address. If you receive anything like this via email, forward it to the IRS. They are currently investigating this nasty scam.

4. The "Please Verify Your Tax Information" Call

Not all IRS scams are designed for immediate profit. This one is designed to harvest your personal information, which can then be used for identity theft, or to actually grab a refund owed to you before you even claim it. In 2013, the IRS paid out over $5.8 billion in stolen tax refunds, and the problem is not going away.

As the scammer is not asking you to pay a bill, it can feel much less threatening. The fake agent will be very polite, and will say that the IRS needs to verify some information on a tax return you previously filed. They may even have some personal information that makes it sound like they have your file right there in front of them. But, the information they really want, like your SSN or bank details, will not be available.

Questions will start out simple: "I have your name as John S. Doe, could you spell that please?" But this will quickly lead to "And could you verify your social security number for me?" At this point, the scammer won't have anything to work with, and is hoping you simply parrot back the response.

Remember, the IRS will not call you asking for this kind of information. If you do have an issue with a former return, you will get an official notice in the mail, asking for the information to be verified. And if you doubt that, call the IRS directly.

5. The "IRS Taxpayer Advocate" Email

In 2014, the IRS warned of a new scam that was designed to solicit personal information, leading to identity theft and stolen tax refunds. This is known as the "IRS Taxpayer Advocate Service," and comes complete with a legitimate-looking case number, and language designed to grab sensitive personal and financial information.

The email, which comes with a "from" address designed to look real, tells you that a former tax return you filed was flagged for review due to a document processing error. Once again, you will always be notified of any problems like this via regular mail, not email.

The email will then say that you must click on a link to submit the missing or erroneous information, which will expedite the filing of the return to avoid any fees or charges. Of course, that link leads to a page hosted by the scammer, designed to collect and abuse your information.

6. The "Federal Student Tax" Call

A new tax scam surfaced last year, and it sadly tricked a few unsuspecting people into handing over iTunes gift cards, W-2 information, or tax return data. If that sounds a bit obvious, it's all done in a way that makes it feel legitimate.

The scammer will call a student and tell them that they owe "Federal Student Tax," which must be paid immediately. There's no such thing as the Federal Student Tax. It's a complete fabrication.

However, the scammers have become much more sophisticated. For example, they are using caller ID spoofing to make the call look like it is coming from an official government line. Plus, information made available on the dark web can give them all sorts of information about the student's background. Together with a very professional sounding "agent," this can all work to convince the student the tax must be paid. And often, they request the money in the form of gift cards, which is another huge red flag. Again, the IRS won't call and ask for money. If this is happening to you, or someone you know, tell them to hang up and report the incident to the IRS.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Avoid Theft While Traveling

Nick Wharton — Mon, 16 Jan 2017 11:00:11 +0000

Travel can be a beautiful and life-changing experience, however, it does come with its own set of risks. By setting out in a prepared way, you can reduce the chance of having a horror story to bring back home with you. (See also: 7 Ways to Protect Yourself From Theft While Traveling)

While some destinations have reputations for being dangerous, petty crime like pickpocketing and theft can occur in pretty much any major city in the world. It exists in Paris, just as it does in New York. (See also: What to Do When Your Belongings Get Stolen Abroad.)

You may want to research your destination before you leave home to get an idea for the major concerns that you will face on arrival, and to develop the strategies you might follow once you're there. It helps to have a credit card that offers purchase protection insurance against theft or accidental damage. While it doesn't help to be suspicious of everyone, you do need to be aware of some basic procedures and guidelines for safety. (See also: Follow These 5 Credit Card Rules When Traveling)

Be Aware, Not Afraid

While you're traveling, you may find yourself at times out of your comfort zone. This is a completely normal part of traveling and it can arise from something as simple as not speaking the local language. Your discomfort does not mean that you're in a particularly risky situation.

However, regardless of how you're feeling, it's important to project an attitude of confidence. If you do find yourself in a situation that you're uncomfortable with, confidently take action to get yourself out of that situation.

If you appear to be frightened, you may make yourself seem like an easier mark for petty crime. Instead, you should focus on having a good time while always being aware of your surroundings.

Be especially alert when taking public transportation as this is a common place for pickpockets to strike. (See also: How to Use a Decoy Wallet When Traveling)

Keeping Your Stuff Safe

What kind of bag did you choose to bring with you? The most secure bags for traveling always close securely. This means they have a zipper or a front flap that closes tightly so that pickpockets can't get their hands into them easily (or at all!).

Avoid walking around with valuables or money in your back pockets. Instead, put your stuff in your front pockets where you'll notice if anyone's trying to grab it.

Sometimes pickpockets work in groups, so there may be someone chatting with you as a distraction. This doesn't mean you need to be wary of every person that comes your way to talk to you, but if the situation doesn't feel comfortable, listen to your intuition and find a way to get out of it quickly — and confidently. (See also: How to Get and Carry Cash Safely and Securely)

Understand Your Surroundings

Travel is amazing because it means you get to check out uncharted territory. However, it's always a good idea to either research online or talk to locals once you get there. If there are neighborhoods that they avoid, for example, it's better to know about them before you end up wandering there.

Some places will be perfectly safe to walk around during the day, but are better off avoided at night. Know how and where to get a reliable taxi. You can ask the receptionist or concierge at your hotel and they will likely give you an informed answer. Just make sure you take the time to ask; then you can explore in a carefree and safe way.

Avoiding Theft at Your Hotel

If there is a safe in your hotel, it's a good idea to store your valuables (cash, passport, credit cards you won't be using) there. If you don't have a safe, consider another secure place. Remember, your wallet may not be the best choice since it's the most obvious place that a thief would check for cash.

If you're staying in hostels, they will usually have a locker where you can put your belongings. Remember to travel with your own lock since sometimes a hostel won't provide them, and if they do provide them, you have no way of knowing who else has a copy of the key. (See also: How to Keep Your Laptop Safe When Traveling.)

And During Transport

Airlines rightly recommend that you never check valuables. Tablets, cameras, and computers all need to be packed into your carry on bag. The reason for this is straightforward; a checked bag will be out of your eyesight and in the hands of strangers for the majority of your time in transit. Keep them close.

For train and bus travel, be cautious especially during overnight trips. Again, the bag that you check under the bus or at the end of the aisle of a train car is the bag that's at a higher risk of going missing.

For overnight buses or trains, consider a money belt that you can tuck into your pants while you sleep. This will give you peace of mind and a reasonable defense against pickpockets or thieves who will look to target you in your sleep. You are at a higher risk while traveling alone, so you may want to find a travel buddy, even if it's just for a few days.

To Money Belt or Not?

Outside of those overnight journeys, you may want to use a money belt for daily use, too. This is a personal choice and there are solid arguments on either side of it. Some people will never use a money belt because it feels clunky. You can argue that when you pull out or otherwise show the money belt, it will pinpoint you as a tourist and may make you a more likely pickpocketing target. If locals aren't using money belts, why should you?

However, if you feel comfortable hiding money on your person in this way, there's nothing wrong with that either.

If you're keeping money in a bag, be sure that it's in a zipped compartment. You may also want to consider separating your money, so maybe you have some in your pocket and some in your bag. This way if some of it does get stolen, chances are that not everything will get lifted. Also consider keeping some emergency cash or credit card with a list of contacts somewhere very safe, in case you do lose everything you're carrying. (See also: Best Credit Cards to Use While Traveling)

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Follow These 5 Credit Card Rules When Traveling Abroad

Ashley Eneriz — Fri, 19 Aug 2016 10:00:12 +0000

Traveling around the world can be an exciting time. However, if you are not careful with your credit card use, your trip can dig you into deep money trouble. Keep your money safe and your budget on track with these five credit card rules.

1. Only Use Cards With No Foreign Transaction Fees

Using the wrong credit card for your international shopping could cost you a lot more than you think. Most cards will charge a one to three percent foreign transaction fee for each purchase made overseas. This might not seem like a big deal, but it can add up quickly. If you end up charging your hotel, all of your food, shopping, transportation, and events internationally, that can easily add up to hundreds of dollars in foreign transaction fees alone. Bring a card that has no foreign transaction fees.

2. Avoid ATM Machines

Do not use your credit card for cash withdrawals at ATM machines. It will be processed as a cash advance. Cash advances come with higher APRs, and interest starts accruing immediately. It's not wise to use cash advances at home, and it's definitely not wise to use them abroad.

The best way to get cash abroad is to sign up for a bank that provides ATM usage with no or low fees, or has a vast network of ATMs in the country you're traveling to. Keep in mind that while some banks offer zero fees for ATM usage, they may still charge you a foreign transaction fee for getting money in local currency. Capital One 360 Checking offers ATM usage with no fees and no foreign transaction fees.

3. Just Say "No" to Debit Cards

A credit card will be safer to use abroad than a debit card. It would be horrible to run your debit card at a small souvenir shop, only to have your bank funds drained from card theft. Even better, use a credit card with the new chip technology that reduces fraud and identity theft.

Often a hotel or car rental agency will put a hold on your card, so if you are using a debit card, it may take time for your cash to be available to you again. And if you ever run into problems with the funds release, you'll be stuck without access to your money. With a credit card, however, you can talk with your credit card company about removing the hold or helping you resolve the issue, without having to actually pay for it and wait for the funds to be returned.

4. Bring Multiple Credit Cards

Don't rely on just one card for your trip. Bring two or three cards altogether, allowing yourself a backup. It is a good idea to vary your cards, too. For example, don't make them all Visas. Try to have another card that is a MasterCard or American Express. If you run into an issue using one of them, you'll have another to fall back on.

5. Set Up Spending Alerts

No one wants to think about fraud and identity theft while they are on vacation, but it is a good idea to check over your purchases and make sure you have all of your cards and identification daily. Sign up for spending alerts so you get an email or text for each purchase. It may seem excessive, but you don't want to take any chances while you're traveling. Also, it's better to get these alerts than to log into your credit card account through public Wi-Fi. You can also call your credit card company to review recent charges.

Traveling abroad is an adventure, so don't ruin your trip with unwise money moves.

What is your favorite card to use when traveling abroad?

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This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Ways to Protect Yourself From Theft While Traveling

Mikey Rox — Tue, 26 Jul 2016 09:30:37 +0000

Vacation is a time for rest and relaxation. But your good-time getaway can quickly turn into a living nightmare if you're the victim of theft while you're away from home. Lock down your loot and guard your identity when you travel abroad with these helpful tips on how to protect yourself.

1. Keep Your Money Hidden

Listen, we all know you're a baller with the big bills on vacay, but let's keep that our little secret. The less money you flash around in public, the fewer chances a would-be thief has to target you.

"I always kept my money hidden, and never ever pulled money out," says frequent traveler and blogger Stephen Roe, who lived in Tijuana, Mexico for five years without becoming a victim of theft. "Other Americans would pull out a wallet to pay. I would always choose to select the money in my pocket and only pull out the amount I needed. That way, potential criminals wouldn't know how much I had."

Roe adds, "In addition, it's best to pay in the local currency whenever possible. Whipping out American dollars, even if it is accepted, can mark you as a potential target."

Travel author Susan Schenck suggests a similar strategy with your debit card.

"When going to an ATM, have the card in a money belt," she relays. "Make sure there are no loiterers around the area, though often they are even across the street. Go into the bank to count the money. There is a security guard there, often with a gun. Then place it all in your money belt. This is critical. I have so many friends who stuck the money in a pocket only to find it was gone when they got home. Pros can pickpocket you without your feeling anything. Keep the money belt well hidden under your pants."

2. Use Credit Cards Wisely

First, never use a debit card abroad. If it gets stolen, your funds can get depleted and it will take time for the bank to release the funds, if they decide you weren't responsible. Trying to settle these types of matters while you're on vacation abroad is definitely not ideal.

Travel expert Ferdinand Goetzen suggests avoiding using your card in questionable places. "This is especially important when traveling in less developed nations," he says. "Payment security infrastructure can often be lacking so it's best to avoid using your card unless it is a trusted venue or bank."

But credit cards can be helpful when used in safe environments, and can be a better alternative to carrying cash around. It's better to lose a credit card than cash. Credit card companies typically don't hold you accountable for fraudulent charges, as long as you report it quickly. Keep track of your cards carefully so you know if you've lost one, and set up alerts to notify you of purchases so you can see right away if someone has stolen your card information.

3. Use Caution When Taking Taxis

Taxis and nefarious taxi drivers can cause unnecessary trouble if you don't keep your wits about you. Schenck advises to write down the cab number before you get in for reference if you accidentally leave something behind. When exiting a cab, if you have luggage in the trunk, do not get out of the cab until the driver does; they've been known to high-tail out of there with your valuable belongings in tow. And never ask a taxi to wait while you go to the ATM if you leave stuff in the cab. "One friend lost her laptop that way," Schenck says.

4. Use a Dummy Wallet for Fake-Outs

Want to trick the trickster? Have a fake wallet with outdated credit cards and maybe $20 in it that you can hand to anyone who holds you up. They want a quick getaway and aren't going to sit there and check the dates on the cards, says Schenck.

5. Keep $20 Where the Sun Don't Shine

Well, maybe not in the sense that you're thinking of, but it's not a bad idea to keep a $20 bill in your socks, bra, or other safe, close-to-your-body area in a hidden garment in the event that you're robbed. Twenty dollars goes a long way in many countries, and you'll at least be able to get home or to the nearest police station.

6. Bring a Separate Small Backpack for Valuable Objects

"One of the most common thefts occurs when people leave valuables in their main luggage and leave it in the hotel lobby or in the baggage compartment on buses or trains," Goetzen warns. "I always bring a small backpack with all of my most important belongings because I don't like to let them out of my sight."

Also, stop assuming that your belongings will be safe with the friendly, nice-looking people next to you at transportation hubs while you go to the bathroom. Even friendly, nice-looking people steal things, and you'll be quite S.O.L. (and super P.O.ed) if they gang the bag with your tickets, passports, and wallet while you're taking a whiz.

7. Use Common Sense

Don't travel to areas that aren't policed, stay out of dark alleys, and don't go anywhere with anybody you don't know. Don't drink so much when you're in unfamiliar territory either. It makes you do stupid things and make poor decisions, and you become a sitting duck for criminals. Your mom totally would've told you so.

Do you have tips on how to protect yourself when traveling abroad? Let's discuss in the comments below.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Expenses You Should Never Cut

Mikey Rox — Mon, 30 May 2016 10:30:05 +0000

Over the years, I've come up with hundreds of ways to trim proverbial fat from nearly every aspect of your budget. And I stand by those tips, tricks, and strategies because most of us have areas where we can pull back on the spending a bit.

But some things are nonnegotiable. There are necessities — sometimes rather costly ones — that are required for us to live decent, healthy, and satisfying lives. What are they? Take a look at these eight expenses you should never cut, and let me know some of the areas where you just can't or won't shake out savings in the comments below.

1. Health Care

First and foremost, it's critical to have health insurance. It's required in the United States, whether from a private provider or via Obamacare, and without it you run the risk of either being denied care or racking up serious medical bills that could put your finances in dire straits for the foreseeable future.

Aside from that, when you're sick or need medical attention, you want the best care you can get. Some prescriptions are expensive, too, and health insurance can greatly reduce those costs. You should never let coverage lapse because you're generally healthy or you don't think you'll fall ill anytime soon. Murphy's Law dictates that it's in that scenario you'll need medical attention, and you'll want to have insurance on your side.

2. Personal Hygiene

Soap, shampoo, and toothpaste are essential — and readily available, like on nearly every corner of your neighborhood, for not much money. Which is weird, because I know plenty of people, perfectly well-off individuals at that, who don't seem to use any of it on a regular basis.

If you're one of those folks who likes to gripe at the cost of personal hygiene products and therefore use that as your excuse to skimp on washing yourself on a regular basis, you'll be happy to know that bargain brands, like Suave for example, do a bang-up job of keeping you clean. Not to mention that there are always coupons available for hygiene products, especially toothpaste, that can help reduce the cost of these items. Find the items on sale plus pair them with coupons and you'll spend oftentimes less than a dollar on what you need per item.

3. Personal Safety

Most of us practice personal safety consistently. We try to avoid automobile accidents, we look both ways when we cross the road, and we never run with scissors. Those are all subconscious decisions that don't cost a dime, which is why you might be asking yourself how personal safety costs you actual dollars and cents.

For starters, the car that you drive should be rated for safety. When you're strapped for cash and need an inexpensive vehicle, choosing a cheap car that gets you from A to B may seem like an ideal option. Certainly there are times — and financial constraints — that call for this type of decision-making, but you'll almost always regret it in the long run. Instead, I recommend loosening the purse strings just a little more so you can buy a vehicle that will protect you if you're in an accident, opposed to one that's already falling apart.

Another example is safety on the water. Life vests are cumbersome, and nobody likes to wear them. But you know what? They save lives, and there are millions of people in this world who will tell you that they regret not buying or renting life preservers during an outing that resulted in someone's harm or death. It could have been prevented if they had just sprung for the darn things. Thus, spring for the darn things.

4. Healthy Food

It's true, food is expensive, especially the healthy stuff — but you shouldn't be making cuts to your budget that include reducing the amount of healthy food you're eating by replacing it with less expensive, toxic food — like that microwaveable junk that comes from the freezer section or the stuff you grab at the drive-thru window.

It's okay to indulge in it every now and then — who doesn't like to dive headfirst into a bag of Doritos from time to time? But most of your food should be fresh and nutritious. You owe it to yourself — and your longevity — to eat healthy, and there are lots of ways you can cut down on your healthy food bills if you put in the legwork before going grocery shopping. Wise Bread can help you save a substantial amount on your supermarket bills if you do a little digging for advice.

5. Mental Health Care

Mental health is a hot topic of conversation nowadays, though we should have started talking about it seriously a long time ago. Personally I've suffered from depression and anxiety — and still do from time to time — and I've known too many people who have committed suicide because they weren't able to figure things out. Which is why it's my duty to tell you that your mental health is worth every extra penny you can afford. If you need medication, get the medication. If you need someone to talk to — which can help immensely when you're troubled — go see a therapist. If you have decent health insurance, prescriptions and therapy should be covered so you can afford to help yourself.

And it goes without saying that if you feel like there's no hope left, please believe me when I tell you that there is. People care about you, and you can talk anonymously about whatever you're feeling by calling the National Suicide Prevention Lifeline 24 hours a day, seven days a week at 1-800-273-8255. You matter; whether you believe it right now or not — you matter.

6. Insurance

By law in most U.S. states you're required to have car insurance. So if you're thinking about cutting it because you don't drive very often or very far, you're in for a rude awakening if you have the unfortunate luck of being in an accident — and you'll probably go to jail on top of whatever expenses the crash racked up.

Homeowners and renters insurance are also areas where it's not wise to be a miser. You don't have to have super-premium, platinum, Superman coverage, but you should have enough coverage to fully cover the things you own — so they can be replaced quickly and efficiently — in the event of an accident.

7. Debt Repayment

If you're already pinching pennies because you're in debt, it can be easy to brush it to the side and try to forget about it. You're in so deep that you'll never pay it off, so why worry about it, right? Wrong.

In this case, you have few options to stay on track, but you may be able to cut something less important from your budget to continue making payments, or — and I know this is an offensive idea to some — pick up an extra job or side gig to start earning more income. The problem with debt is that it will never go away, and it's your responsibility to pay off what you've accumulated. You alone made those purchases, and you alone need to pay them off. There are assistance programs out there that can help, and I recommend researching your options in that regard, but whatever you do, don't act like it doesn't exist. It does, and it will follow you around like a black cloud for the rest of your life until you address it.

8. Things Your Kids Depend On

There's a buzzword that's being tossed around willy-nilly right now with regards to children and teenagers (and even 20-somethings). We hear it a lot: Entitlement.

While I contend that American children tend to be somewhat entitled, there are some things to which they're actually entitled — like a proper education and health services. If your child needs a tutor, hire a tutor. If your child needs a therapist, seek therapy. Hopefully you had children for the right reasons, because you wanted to have a family to love and care for. If you're trying to be over-thrifty in these areas, you may not be doing the best job of holding up your end of the parenting bargain.

Find areas in your own grown-up budget to eliminate — like one of your many memberships perhaps, or that adults-only vacation — and help your kid stay on the right path, physically, emotionally, and mentally. You owe them that much.

What costs do you refuse to skimp on?

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Ways Being a Safe Driver Will Save You Big Money

Dan Rafter — Tue, 05 Jan 2016 18:00:07 +0000

That speeding ticket can cost you — to the tune of an initial fine of $100 or more. That's bad enough, but then comes the hit to your insurance premium. You can expect the cost of your auto insurance to jump by at least 20% if you're caught driving 15 miles per hour over the speed limit, according to a study by InsuranceQuotes.com.

But if you follow the speed limit, you don't have to worry about this financial hit. (See also: 10 New Car Costs the Dealer Is Hiding From You)

That's just one of the ways that being a safe driver can save you a load of money. Here's a look at the financial benefits that a safe driving record will bring you.

Lower Insurance Rates and Discounts

A clean driving record — one free of auto accidents, speeding tickets, or other moving violations — can dramatically reduce the amount you pay to your auto insurer each month.

Insurance Quotes and Quadrant Information Services studied the impact of traffic incidents on insurance rates, and discovered that driving under the influence increased auto insurance premiums by an average of 93%. Reckless driving boosted it upward by an average of 82%. For speeding, the average increase varied, but those drivers going up to 15 miles per hour over the limit generally saw their insurance premiums jump by 21%.

Another study by InsuranceQuotes.com, released in early 2015, found that drivers who make one accident claim will see their auto insurance rates jump by an average of 41%. Those who make two claims in a year will see their auto insurance rates increase by 93%.

If you're a safe driver, you can actually be rewarded and save money by way of discounts. Allstate offers savings of 22% on policies after three consecutive years without any violations or accidents. After five years without any violations or accidents, drivers can reduce their insurance rates by 35%. Allstate also offers a defensive-driver discount. Under this program, drivers who are 55 or older and who complete six or more hours of defensive-driving courses can save up to 10% on their auto insurance.

Don't have Allstate? Geico offers a discount of 26% for drivers who have been accident-free for five years. American Family offers drivers without accidents, violations, or claims a discount of 5% to 10%. Contact your auto insurance provider and see what safe driver discounts are available.

No Speeding Tickets

Getting a speeding ticket isn't much fun. It's costly, too. Last year, NerdWallet took a look at what a speeding ticket can cost drivers in California. According to the site, those drivers who were ticketed for going 15 miles per hour over the speed limit paid an average of $234 when fees and surcharges were taken into account.

In 2013, insurer Esurance reported that the average speeding ticket costs drivers throughout the United States $150. That's a lot of money. And it doesn't even take into account how much your insurance rate will jump after a speeding ticket. Speaking of which...

Gas Savings

You might not think that driving the speed limit will save you money at the fuel pump, but it will. According to the Department of Energy's FuelEconomy.gov, aggressive driving — which includes speeding, rapid acceleration, and hard braking — can lower your car's gas mileage by 33% at highway speeds and by 5% when you're driving in town.

By driving the speed limit, and by avoiding rapid acceleration and braking, you can save up to 21 cents per gallon in fuel costs.

Fewer Traffic Accidents

Car accidents are terrifying events. They're also expensive ones.

Speeding, not paying attention, or driving under the influence can not only result in terrible injury or death, but tremendous economic impact. According to a 2010 study by the National Highway Traffic Safety Administration, the overall cost of motor vehicle crashes in the U.S. amounted to nearly $1 trillion. By being more aware, you can save yourself and others the costly financial burden of deductibles, auto and property repairs, rate hikes, and bodily injury.

Driving safely and at the speed limit won't completely protect you from car accidents and their costs. But it will help.

Do your driving habits help or hurt your wallet?

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: